Which statement describes how CIGA is funded?

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Multiple Choice

Which statement describes how CIGA is funded?

Explanation:
CIGA is funded through assessments on member insurers. When an insurer becomes insolvent, CIGA steps in to cover covered claims, and the costs are recouped from the insurance industry by levying assessments on the member insurers. Those assessments help pay the claims and are ultimately reflected in premiums paid by policyholders, rather than coming from policyholders directly, state taxes, or the general state fund.

CIGA is funded through assessments on member insurers. When an insurer becomes insolvent, CIGA steps in to cover covered claims, and the costs are recouped from the insurance industry by levying assessments on the member insurers. Those assessments help pay the claims and are ultimately reflected in premiums paid by policyholders, rather than coming from policyholders directly, state taxes, or the general state fund.

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